Thesis (MPA)--Stellenbosch University, 2004. / ENGLISH ABSTRACT: A commitment to the market economy was easily extended to a widespread belief that money is the best motivator for work performance although there is no hard evidence to support that belief as a universal proposition (Armstrong & Murlis, 1994:263). Armstrong & Murlis (1994:263) contend that even if the effectiveness of money as a motivator can be questioned, most organisations strongly feel that it is fair to reward employees according to their contribution. The drive against incremental pay systems has taken place because management do not see why people should be paid for simply being there. Many people explicitly associate incremental pay systems with unmotivated performance. The argument being that if people are paid more flexibly according to their performance, they are more likely to be motivated than if they are sitting around waiting for the next automatic salary increment. Performance-related pay (PRP) schemes became more popular in many organisations in the 1980s as an answer to motivating employees and developing performance-oriented cultures. According to Flannery, Hofrichter & Platter (1996:83), organisations have been slowly coming to the realisation that compensation programmes have in many cases become a barrier to the growth and success of the organisations. Consequently, many employers devised new compensation systems that would likely support their emphasis on values such as quality, customer service, teamwork and productivity. Research shows that PRP systems can work for the organisation, but the first wave of enthusiasm revealed some weaknesses in their application. In this study project, the origins and underlying forces around PRP are discussed. The nature of PRP in the Lesotho Civil Service is addressed. PRP as part of the performance management system (PMS) in the Lesotho Public Service is introduced as a substitute for the current 'automatic' incremental pay system. Lastly, a model for introducing PRP in the Lesotho Civil Service is designed as a step-by-step guide for the people who are working on the PRP scheme. / AFRIKAANSE OPSOMMING: 'n Verbintenis tot die markekonomie het maklik aanleiding gegee tot 'n wydverspreide geloof dat geld die beste motiveerder is vir werkprestasie, hoewel daar geen vasstaande bewys is vir ondersteuning van die geloof as 'n universele proposisie nie (Armstrong & Murlis, 1994:263). Armstrong & Murlis (1994:263) beweer dat selfs al kan die effektiwiteit van geld as 'n motiveerder bevraagteken word, die meeste organisasies sterk voel oor die regverdigheid daarvan dat personeel volgens bydrae vergoed word. Die beweegrede vir afsien van die inkrementele vergoedingstelsel is te vinde in die bestuur se siening dat personeel nie noodwendig vir blote teenwoordigheid vergoed hoef te word nie. Baie mense assosieer die inkrementele vergoedingstelsel direk met ongemotiveerde werkverrigting en die argument word dan ook gehuldig dat as personeel met groter buigsaamheid volgens prestasie vergoed word, hulle waarskynlik meer gemotiveerd sal wees as wanneer hulle maar net wag vir die volgende outomatiese salarisverhoging. Prestasie-verwante vergoedingstelsels is gedurende die 1980's toenemend deur organisasies ingevoer as 'n meganisme vir die motivering van personeel en die vestiging van prestasie-georiënteerde kulture. Volgens Flannery, Hofrichter & Platter (1996:83), het organisasies stadigaan begin besef dat vergoedingsprogramme in baie gevalle belemmerend was vir hul groei en sukses. Gevolglik het baie werkgewers nuwe vergoedingstelsels ontwerp met waarskynlike steun vir hul beklemtoning van waardes soos kwaliteit, kliëntediens, spanwerk en produktiwiteit. Navorsing het getoon dat prestasie-verwante vergoedingstelsels gewenste resultate in 'n organisasie kan lewer, maar die aanvanklike geesdrif is gedemp deur swakhede wat in die toepassing daarvan na vore gekom het. In hierdie studie word die oorsprong van en onderliggende stukrag agter prestasieverwante vergoeding bespreek. Die aard van prestasie-verwante vergoeding in die Lesotho Staatsdiens word aangespreek asook hoe dit as deel van die prestasiebestuurstelsel in die Staatsdiens ingevoer kan word as plaasvervanger vir die bestaande outomatiese inkrementele vergoedingstelsel. Ten slotte word daar 'n modelontwerp vir die instelling van prestasie-verwante vergoeding in die Lesotho Staatsdiens as 'n stap-vir-stap gids vir diegene gemoeid daarmee.